The Money Trail (Minority set aside goes wrong)

The Baltimore Sun ^ | November 17, 2002 | Sun Staff

[staytrue]

July 1995 Maryland pension system decides to use more minority money managers.

Fall 1996 Nathan A. Chapman Jr. buys Minority Equity Trust, a fund invested in by a collection of minority-owned firms. One MET client is state pension system.

December 1996 Chapman, as new MET owner, signs contract with pension system to manage some of its money.

January 1997 Chapman signs contract with Alan B. Bond making Bond a manager in MET. Gives Bond $10 million in pension money to invest.

January 1998 Chapman gets additional $40 million in pension money; gives $5 million of that to Bond to invest.

February 1998 Bond uses $560,000 in pension money to buy 70,000 shares in a Chapman company, Chapman Holdings Inc.

July 1998 -- February 1999 Chapman gives Bond $8 million in pension money to invest.

This is an excerpt. For the rest of the article click the link above.

[staytrue]

The gist of the article is that Maryland pension system gives a contract to Chapman to manage money. Chapman hires Bond to invest the money. Bond invests money in a bogus Chapman.com shell company. Chapman gets rich. Bond uses some other pension money to cherry pick. That is where the winning trades are routed to Bond and the losing trades are routed to the pension fund. Bond gets rich but will now likely go to jail.

Cherry picking is essentially how Hillary made her first 100,000 in cattle futures. Basically, the winning trades were sent to her account and the losing trades went to Tyson foods. Hillary gets rich. Husband Bill does regulatory favors for Tyson foods in return. And while Tyson foods loses 100,000 in cattle futures, they probably get 1000 timest that in government favors from Bill.

[staytrue]

ping

[nanny]

[Cherry picking is essentially how Hillary made her first 100,000 in cattle futures. Basically, the winning trades were sent to her account and the losing trades went to Tyson foods. Hillary gets rich. Husband Bill does regulatory favors for Tyson foods in return. And while Tyson foods loses 100,000 in cattle futures, they probably get 1000 timest that in government favors from Bill.]

Hey, thanks!! I always wondered exactly what went on there. Now I know.

[lelio]

Thanks for the post! That's why I think all this talk about campaign financing and "how much did they give" is just nonsense. How much money did Bond give Chapman to finance campaigns (its a little bit of a stretch as he didn't have to run for office)? None! But millions of dollars traded hands. Likewise with Hillary and Bill and Tyson.
Its all about money and power transfers, but not in the simplistic way that's protrayed in the media.

[lelio]

To add to my post, I'm amazed that people buy the stuff they read that (for example) Arthur Anderson gave $10k to so and so's campaign. $10k? That won't get you on an exclusive golf course, and you as a politican are supposed to change laws for them that will make millions? I can't see why people think a small investment is supposed to pay off a thousand fold.

[End The Hypocrisy]

What's really noteworthy is when African Americans abuse their power to cheat fellow African-Americans whom they're actually paid to support. Getta load of this:


Washington Post.com article:

http://www.washingtonpost.com/wp-dyn/articles/A49287-2002Oct18.html

"A former Pentagon agency director and his top aide were charged yesterday with extortion and bribery for allegedly demanding payoffs, prostitutes and expensive watches in exchange for government contracts. Robert L. Neal Jr. headed the Defense Department's Office of Small and Disadvantaged Business Utilization from 1996 to June 2001, and Francis D. Jones Jr. was his executive assistant. In a 52-page affidavit unsealed in U.S. District Court in Alexandria yesterday, federal agents said the two men instructed contractors to make payments to companies friendly to Neal and Jones to obtain or maintain lucrative federal jobs. The money would then be laundered through a sham company or a secret trust in the small principality of Liechtenstein, the affidavit said... The Office of Small and Disadvantaged Business Utilization was created to help small and minority businesses obtain defense contracts. The office awards few contracts, but it exerts influence within the Pentagon, officials said... The office also directly controlled $28 million annually for the Mentor-Protege Program, in which small businesses find a large Defense Department contractor to serve as a partner and receive both training and contracts. One small business in the program told investigators that in 1997 and 1998, Neal and Jones demanded several payments of $8,000 to $15,000, "or they would take certain adverse actions or cease taking helpful actions" for the participant's company, according to Stroot's affidavit."


Washington Times article:

http://www.washingtontimes.com/national/20021019-77594800.htm

"According to the affidavit, Mr. Neal and Mr. Jones, both of whom are black, engaged in a wide range of criminal activities during their tenure at the Pentagon, using their positions as leverage to receive illegal extortion payments, bribes and gratuities from minority or disadvantaged Defense Department contractors seeking to participate in the preference programs....Mr. Neal has been awarded the Secretary of Defense's Outstanding Public Service Medal and Outstanding Achievement Award, the OMB's Special Performance Awards, OMB's EEO Award and OMB's Divisional Awards for Special Performance."

[Jimbaugh]

Great lesson in stock scams.

[AntiScumbag]

while certainly accurate in a general sense, "cherry-picking" doesn't quite give the full flavor of how red bone, blair, the witch, et al accomplished the wonderous 100k feat

i detailed the nuts and bolts of how their scam worked back in june in posts 5 and 8 of this thread